The news: Ad-supported streaming models are gaining steam and becoming a dominant part of the subscription market.

• Nearly half (48%) of all premium subscription video-on-demand (SVOD) accounts in the US were ad-supported in Q1 2026, up from 46% in Q1 2025 and 39% in Q1 2024, per Antenna’s State of Subscriptions report.
• 78% of the 64.8 million subscribers who joined major streaming platforms in the past two years chose ad-supported tiers.

Why it matters: For marketers, this shift makes streaming a bigger, performance-oriented ad channel rather than a niche, premium buy. That helps ad tiers serve as a primary engine of platform growth.

• Consumers are becoming more price sensitive, and as more viewers enter through ad tiers, platforms can offer greater reach, strong targeting, and measurable outcomes.
• This dynamic means streamers’ long-term growth depends as much on advertisers as it does on subscriber volume.

However, while rising inventory could help ease pricing pressure, it could also raise the bar for ad quality and relevance.

Recommendations for marketers: As platforms prioritize user experience to retain these cost-conscious subscribers, marketers will need to balance efficiency with creative that fits the streaming environment.

• Prioritize streaming in performance media mixes as audience sizes grow and measurability improves.
• Test and optimize creative for lean-back viewing environments and identify platforms that offer strong targeting and transparent metrics.
• Invest in platform- and title-specific creative, align with partners that can demonstrate clear ROI, and take advantage of the growing inventory of ad-exposed subscribers to test, learn, and refine buying strategies.

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